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4.
Executive Summary
Three macro trends in the industry landscape:
1. Hotels are exploring new techniques for
implementing revenue strategy
2. The legacy OTA model is declining while
apps and metasearch are gaining traction
3. New entrants spell disruption for select
customer segments

5.
Report Highlights
Highlights of Part 1:
1. It’s all about channel mix
2. Commission growth is rising at a faster rate than
revenue
3. Trip planning is complex
4. Content is king
5. The billboard effect is dead
6. Last room availability and rate parity are key strategy

6.
Report Highlights
Highlights of Part 1 (cont):
7. OTA consolidation implications
8. Where are search, meta search and apps going?
9. Direct booking campaigns
10.Corporate travel: the days of the RFP are numbers
11. AirBnb and the Sharing Economy

19.
Demystifying the Digital Marketplace
What you Need to Know
1. Imperative for hotels to shift revenue generation approach from an analog to a
digital environment
• Commissions are still rising at 2x rate of revenue growth
• The days of hotels being “on every shelf” are over—costs too much, undermines customer
relationship
• Manage to an optimal channel mix and differentiate the guest experience
2. Current OTA model not sustainable; apps & metasearch will alter market
• Content drives conversion; competition growing around access
• The “billboard effect” is dead
• LRA and Rate Parity are on the decline; more autonomy coming
• Threats to the OTA duopoly are driving diversification; meta and apps will dominate within five
years
3. New entrants will be disruptive in a few key customer segments
• Corporate travel is about to hit a major inflection point; RFP system will be replaced
• Home rentals will impact select business in major markets; won’t be a uniform effect
• Groups and meetings are booked with inefficient processes and carry high costs